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jmc wrote: It is all about demand, 70% of the U.S. economy is consumer driven, People are saving , the debt bubble burst, Home values have sunk. It will take a while to recover. Gov and business can only react. This will take a few years regardless of gov. policies. We need to dig out of a big hole. WE created this we are paying the price. Just a dose of reality.
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jmc wrote: WE created this we are paying the price. Just a dose of reality.
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Joe wrote: I know you lefties are going to hate this, but here is the pain that is necessary to get jobs created and unemployment down.
1. Immediate end to extended unemployment benefits > 6 months. Temporary welfare support for families only.
2. Immediate end to housing support. End Fannie/Freddie and get back to normal mortgages 10-20% down, market rates, excellent credit only. (Like Germany does)
Yes house prices will dive. The correct market price will be found and then buyers will step in. People underwater will finally all do the smart thing and walk away, free to move to another state and get a job. They will be better off than trying to save their permanently underwater mortgage. Rent for awhile. Move in with friends or family.
Its either that or stay the present course and go bankrupt as a country with anemic growth and massive deficits. We need a booming economy to get out of this hole.
Oh, and there are smaller things that could be done with job re-training and tax credits for small business, deregulation, etc. But the top 2 are the biggies.
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Joe wrote:
jmc wrote: WE created this we are paying the price. Just a dose of reality.
I sorta have to take issue with the WE. There are plenty of people who live within their means and stay clear of debt and didn't use their home equity as an ATM machine, used down payments and normal fixed rate mortgages, etc. Housing prices got way out of control in certain areas, not everywhere.
I clearly remember watching those "Countrywide" loan commercials before 2007 and shook my head in disbelief. I was also working in San Diego in 2006 and decided no way would I buy into that, even though I loved living there.
Sure the mortgage industry was full of scam-artists, but not everyone fell for it. I don't like over use of the word WE. Sorry.
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"We" was meant as the "Royal we" not individual.Joe wrote:
jmc wrote: WE created this we are paying the price. Just a dose of reality.
I sorta have to take issue with the WE. There are plenty of people who live within their means and stay clear of debt and didn't use their home equity as an ATM machine, used down payments and normal fixed rate mortgages, etc. Housing prices got way out of control in certain areas, not everywhere.
I clearly remember watching those "Countrywide" loan commercials before 2007 and shook my head in disbelief. I was also working in San Diego in 2006 and decided no way would I buy into that, even though I loved living there.
Sure the mortgage industry was full of scam-artists, but not everyone fell for it. I don't like over use of the word WE. Sorry.
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major bean wrote: The present economy is like a man who's job is cut back to part-time whenever he cannot even afford to pay his current bills. So his answer to his dilemna is to go out and get a huge loan. Whenever he finds that after spending the money from that loan his job has not been restored to full-time, his answer is to go out and get an even larger loan. This is liberal thinking.
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